Bitcoin (BTC) maintained fresh gains on April 14 after a bounce in line with the Wall Street open on Wednesday changed the market mood.
$40,500 is now the level to hold
Data from Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair was still trading above $41,000 on Thursday, having reclaimed the $40,000 mark during the move higher.
“So far so good. I was expecting a move to $41,000, but hesitant to go an extra leg down to the green (blue) box,” commented popular crypto trader ed overnight next to a chart with short-term price targets.
“In the next few hours there will be a little more rise, followed by a correction. BTC will retest the $40,500 level, and when it holds we will go for $42,000-43,000 (white). If it loses the $40,500 level, we go for the green box.”
The $40,500 level showed no signs of falling at the time of writing; volatility eased on Thursday and bitcoin did not see any major threat to its rebound.
Others took the opportunity to argue that, Despite the lack of bullish sentiment, bitcoin itself was far from bearish this year.
#bitcoin has been in an uptrend on the daily time frame for nearly 3 months: pic.twitter.com/N3EVgVsj27
— Matthew Hyland (@MatthewHyland_) April 13, 2022
#Bitcoin has been in an uptrend on the daily time frame for almost 3 months now:
The lower the time preference, the less reason to panic: year over year, fellow analyst TechDev showed, bitcoin bore more than a passing resemblance to traditional market behavior, even after falling more than 50% from its all-time highs in November.
This month, the spotlight turned to a similar chart pattern between bitcoin today and the Dow Jones of the early 1990s.
“Times change. Assets change. Macro-aggregate human behavior often doesn’t,” summarized TechDev.
However, the correlation of bitcoin values is a cause for concern for some, as a drop could affect the price significantly.
Exchange withdrawals increase
For Blockware Principal Analyst William Clemente, there are other reasons to keep the faith.
As noted on Wednesday, cryptocurrency exchanges were losing their BTC holdings at a rate rarely seen before, implying that any surge in demand would compete with rapidly diminishing supply, further driving price performance.
“Only 3 other times have we seen bitcoin pull out of exchanges at this rate,” wrote along with data from on-chain analytics company Glassnode.
Glassnode’s Net Position Change Indicator tracks up and down changes in balances across 18 exchanges.
Exchange withdrawal spikes are a hotly debated phenomenon, and the enthusiasm among experts it has increased this year in line with the acceleration in demand.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investments and operations involve risk, so you should do your own research when making your decision.
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